Dixons chief Kalms bows out

SIR STANLEY KALMS, veteran chairman of electrical retailing giant Dixons, bowed out of the company on a high note today, reporting a healthy recovery in underlying sales.

Like-for-like sales grew by 6% in the 19 weeks to 8 September, he said, ahead of today's annual meeting of shareholders. Like-for-likes were flat in the previous 12 months.

Total sales were up 17%, boosted by strong demand for TV sets ahead of the World Cup. Demand for DVD players, fridges, dishwashers and games consoles was also brisk.

However, after the strong spring surge, sales growth then slowed during the summer. Kalms also warned that gross margins had narrowed because of the changing product mix and lower margins on mobile phones.

'While it is too early to extrapolate these trends for the balance of the year, we look forward to a year of continued progress,' he said.

In 1948, at the age of 16, Kalms took over his father's photographic studio in Edgware, north London and transformed it into Britain's biggest electrical retailer. Last night Lady Thatcher, Nigella Lawson and the Saatchi brothers were among guests at a farewell party at Claridge's for Kalms, now 70.

Dixons shares fell 3 3/4p to 177 1/4p after a 14p surge on Tuesday.